Stocks Close Lower, Bond Yields Jump, Trump Open to Iran Sanctions Relief, More

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Bloomberg News Now 6 min 5 speakers 7 chapters transcribed

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What is the main topic discussed in this episode?

Unknown 0:00

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Amy Morris 0:24

News when you want it with Bloomberg News Now I'm Amy Morris.

Why did stocks fall as Treasury yields climbed to multi-decade highs?

Amy Morris 0:31

And there's your closing bell for this Monday on Wall Street, where stocks and bonds fell on worries about possible inflationary pressures caused by an ongoing standoff between the U.S. and Iran. We bring you those closing numbers each day here at Bloomberg. The SP 500 dropped about 60 points, NASDAQ down about 248 points, and the Dow dropped about 347 points. The 10-year Treasury yield at 5.23%, the two-year yield at 4.92%, and the 30-year Treasury yield right at 5.55%. Now the sell-off in the U.S. bond market is deepening. After President Trump rejected Iran's latest proposal to reopen the Strait of Hormuz. The decline pushing most Treasury yields higher by about 10 basis points. The 10-year Treasury yield earlier jumped to 5.27%.

Amy Morris 1:20

That's a fresh 19-year high. And 30-year yields earlier today jumped to 5.57%. That's the most in more than 22 years. Bloomberg Intelligence Chief, U.S. interest rate strategist Ira Jersey.

Ira Jersey 1:32

Some of this move just feels like it's more than being driven by fundamentals. And that means that we're in the middle of a buyer strike. And uh, you know, buyer strikes can last quite a while until yields are high enough that um, you know, it entices people to really come in and and buy in a uh in a pretty significant way.

Amy Morris 1:51

Blooburg's IRA jersey on Bloomberg Business Week Daily.

Could Trump offer Iran sanctions relief in exchange for nuclear progress?

Amy Morris 1:54

President Trump says he's open to sanctions relief for Iran in exchange for progress on the nuclear issue. But Iranian officials have privately expressed pessimism that they'll be able to make a deal before the midterms. Michael Allen is managing director of Beacon Global Strategies. He explains the timeline.

Michael Allen 2:12

I think there is something magic about the midterms because I think the Iranians believe that that would be a gift to President Trump. I think in their minds they're playing a contributing role to the prospect, the possibility, the likelihood that the President might lose the House of Representatives and possibly even the Senate. And they probably are thinking to themselves they don't want to forestall that because they think they have leverage.

Amy Morris 2:36

Beacon Global Strategies Managing Director Michael Allen on balance of power. Crude oil moving higher, but still off session highs, WTI nearing ninety-three dollars a barrel, Brant crude more than one hundred five dollars a barrel. A major achievement today for SpaceX.

What did SpaceX achieve with Starship’s first orbital Starlink deployment?

Amy Morris 2:50

It successfully launched its starship rocket into orbit for the first time, where it was able to deploy dozens of next generation Starlink V three satellites. Bloomberg's Ed Ludlow.

Ed Ludlow 3:00

The latest generation operational Starlink satellites that will contribute to the constellation that powers SpaceX's space-based internet service. So that is a meaningful commercial and operational milestone for SpaceX.

Amy Morris 3:15

SpaceX brought the starship home early. It planned a ten hour trip. They called it after three. Shares of SpaceX fell more than one percent in regular trading. The FAA will delay certification of the largest version of the Boeing seven hundred thirty seven Maxjet while it studies a software issue that could increase pilot workload during landing.

Why is the FAA delaying certification of Boeing’s largest 737 Max?

Amy Morris 3:35

That delay will remain in place until the FAA is satisfied there is no safety issue, Boeing ended the day more than six percent lower. Nvidia has introduced a new double layered AI security system. It says would have prevented the recent high profile breach of hugging face by OpenAI's models. Erica Clower is CIO and founder of Science and Technology Partners.

Unknown 3:57

There has to be more innovation around the security and especially around agency security in order to give continued confidence and adoption of these key technologies.